The Fine Wine 100 Index (LIVX100), that reflects the world prices for wine, has tripled in the last 10 years, while gold quadrupled, Bloomberg says. The company compared the return on gold and wine investments. In addition, wine continued to go up in price and gained 5.9% in 2013, but gold slid 17%.
The agency reports that the analysts expect bullion to slump further into bearish market and wine - to grow. The Credit Suisse specialists believe that gold will drop to $1,100 per troy ounce by the year end, which is 21% less from the current level. The Wine Investment Fund, managing about $50 million of alcohol assets, on the contrary, forecasts that the LIVX100 index will climb 7.6% by the end of December.
Gold has been appreciated for over 12 years, demonstrating the best dynamics in the last century. However, this year investors witness a fall in gold prices. The yellow metal lost 31% to 1,387.2 since January 2013. In April, the global regulators continued to buy bullion, but such measures were insufficient to spur the gold growth. According to the IMF, the central banks of Kazakhstan, Russia, Turkey, Belarus, and Greece were purchasing gold.
The reasons for the yellow metal collapse are hard to define. Some experts blame Chinese economic slowdown for this, while the others suggest that gold was overvalued.
Wine and gold are said to be alternative assets that investors prefer in economic uncertainty. By investing in these assets, speculators hope to save the money they can lose during the market crash. Thus, investors purchase fine wines. The LIVX 100 index is comprised of the most sought-after wines available for trading on the exchange.